Article Trading with the Cumulative Delta ‘Indicator’

Jun 20, 2008
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#16
Like the author I find CD very useful in trading ES where it is strongly correlated with price, but with FX it seems the correlation is all over the place, sometimes even negative. Anyone have any insights into this?
 

bootsyjam

Active member
Sep 27, 2006
219
19
28
London
#17
Like the author I find CD very useful in trading ES where it is strongly correlated with price, but with FX it seems the correlation is all over the place, sometimes even negative. Anyone have any insights into this?
Yes. Don't bother using it for FX as they are relatively thin futures markets vs the markets they are tracking i.e. the spot forex pairs.
I only trade the ES and it's all you need.
Apparently works quite well on oil (CL) I think as well.
 
Jun 20, 2008
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#18
I assumed that was the reason as well, but the ratio of ES daily volume to S&P cash and that of FX futures to FX cash are both about 2%
 

NVP

Well-known member
Jun 21, 2004
35,851
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west sussex, UK
fxcorrelator.com
#19
The new style of price candlestick called PROX Bars has the inputs I mentioned above all within a color coded price candlestick (to simplify what a trader looks at while getting ready to take trades). Kyle from TrendScalping knows all about Delta order flow and order book resistance so I like this new approach for simplified charting.
hey F

interesting Chart ...looks like Renko linked into the other things being incorporated ?

N